ITR Filings Surpass 50 Lakh for AY 2025-26: A Digital Milestone

Over 50 Lakh ITRs Filed for AY 2025-26: What It Means for You and How to File Right

As of June 23, over 50 lakh individuals across India have filed their Income Tax Returns (ITRs) for the Assessment Year (AY) 2025-26. This marks a strong start to the filing season—well ahead of the extended deadline—and signals growing confidence in India’s digital tax infrastructure.

According to data from the Income Tax Department:

Total ITRs filed: 50,82,655
ITRs verified: 47,51,736
Returns processed post-verification: 10,802
Registered users on the portal: 13.03 crore+

The early rush isn’t surprising. With better online utilities, faster back-end processing, and improved taxpayer outreach, more people are now choosing to file their returns sooner rather than later.

Choosing Between ITR-1 and ITR-4: Who Should File What?

While the portal supports multiple return types, a common confusion arises around whether to use ITR-1 (Sahaj) or ITR-4 (Sugam). Here's a quick breakdown to help you decide:

ITR-1 (Sahaj): Who Can Use It?

You can use ITR-1 if all of these apply:

You are a resident individual (not RNOR or non-resident)
Your total income is ₹50 lakh or less
Your income sources are limited to:
- Salary or pension
- One house property
- Other sources (e.g., savings interest, family pension)
- LTCG under Section 112A up to ₹1.25 lakh
- Agricultural income up to ₹5,000

You cannot use ITR-1 if:

Income exceeds ₹50 lakh
You have more than one property
You’re a company director or hold unlisted shares
You have any capital gains other than those under Section 112A
You're RNOR or non-resident

ITR-4 (Sugam): Who Qualifies?

You may file ITR-4 if:

You are a resident individual, HUF, or firm (except LLP)
Income is within ₹50 lakh
You earn from:
- Presumptive business/profession under Sections 44AD, 44ADA, 44AE
- Salary/pension or one house property
- Other sources
- LTCG under Section 112A up to ₹1.25 lakh
- Agricultural income not exceeding ₹5,000

Avoid ITR-4 if:

Income is above ₹50 lakh
You own more than one house
You’ve earned capital gains outside Section 112A
You're a director, hold unlisted shares, or are an RNOR/non-resident
You have deferred ESOPs or special-rate income

Key Filing Timelines for AY 2025–26

Category	Original Deadline	Extended Deadline	Applies To
Salaried & Non-Audit Cases	July 31, 2025	September 15, 2025	Individuals, HUFs, and small businesses
Audit Cases	October 31, 2025	—	Audit-mandated businesses
Belated/Revised Return	December 31, 2025	—	Anyone needing corrections
Updated Return (ITR-U)	March 31, 2030	—	All taxpayers under ITR-U scheme

The ITR rollout was slightly delayed this year due to system upgrades and format changes. But now, Excel, online, and pre-filled JSON tools for ITR-1 through ITR-4 are available and stable.

Common Errors to Watch Out For—Especially with ITR-2

Many high-income taxpayers or those with multiple assets make the mistake of picking the wrong form. If you meet any of the following, use ITR-2:

Income exceeds ₹50 lakh
More than one house property
Capital gains (beyond 112A presumptive business)

Avoid these mistakes:

Incorrect form selection: For instance, using ITR-1 if you own two homes or earn capital gains
Neglecting AIS/TIS/Form 26AS: Always cross-verify TDS and income entries
Improper capital gains reporting: Ensure values and categories align with revised schedules
Excel Utility Issues: Save frequently, validate each section, and upload clean JSON files
Omitting exempt income: Even if tax-free, disclosure helps with transparency and carry-forward benefits
Lack of supporting proofs: Keep records—even if you’re not required to upload them
Income misclassification: Salary ≠ business ≠ capital gain—tag each source properly

Filing Right: Best Practices for a Hassle-Free Experience

Start Early The portal slows down close to the deadline. Beat the rush.
Choose the Right Form Use eligibility checkers before committing to an ITR form.
Cross-Verify All Income Sources Compare Form 16 with your AIS and TIS. Gaps delay refunds.
Use and Save Pre-filled JSON Especially helpful if you’re using Excel-based filing.
E-Verify Without Delay Your return isn’t complete until you verify it—this triggers processing and refund flow.
Revise if Necessary Found an error after submitting? File a revised return by Dec 31, 2025.

Final Word

Crossing the 50-lakh mark in ITR filings this early into the season is no small feat—it reflects growing tax awareness and faith in India’s digital compliance systems. That said, speed should not come at the cost of accuracy. Choose your form wisely (especially if you fall into ITR-2 territory), double-check your data, and file well ahead of the deadline to avoid last-minute panic.